The Japanese yen rose slightly against the USD after the country released its industrial production data. In May, industrial production in the country rose by 2.3%, which was higher than the consensus estimate of 0.7%. In April, the production had risen by just 0.6%. Meanwhile, the country’s unemployment rate remained unchanged at 2.4%. In Tokyo, the biggest city in the country, the CPI rose by an annual rate of 1.1%, which was lower than the expected 1.3%. The core CPI rose by 0.9%, which was lower than the expected 1.0%. The BOJ released its summary of options, which showed that the members had discussed more easing measures.

Asian stocks and global futures were relatively unmoved in the morning session. This is as traders waited for the outcome of the meeting between Donald Trump and Xi Jinping over the weekend at Osaka, Japan. In a report by Wall Street Journal yesterday, the Chinese had set preconditions regarding tariff relief and the reversal of the Huawei ban. The US said that Trump had no preconditions for the talks. Many analysts expect the talks to end without a concrete deal but with a commitment to continue talking.

While most of the focus among investors will be at the Osaka, investors will also receive some key market data. The UK will release the final reading of the first quarter GDP. The GDP is expected to have grown by an annualized rate of 1.8%. On a QoQ basis, the economy is expected to have grown at 0.5%. In the European Union, the CPI is expected to have remained unchanged at 1.2%. In the United States, in May, personal income is expected to have grown by 0.3% while personal spending is expected to have grown by 0.3%. In Canada, the final reading of the Q1 GDP is expected to show that the economy grew by 1.5%.

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EUR/USD

The EUR/USD pair was unchanged and is currently trading at the 1.1365 level. On the hourly chart, this price is slightly above the important support of 1.1343 and slightly lower than the weekly high of 1.1412. On the chart, the price is along the short and medium-term moving averages. With the pair in this consolidation mode, it will likely break-out in either direction.

USD/JPY

The USD/JPY pair dropped slightly after important data from Japan. The pair is now trading at the 107.65 level, which is lower than yesterday’s high of 108.15. On the hourly chart below, this price is between the 38.2% and 50% Fibonacci Retracement level and between the middle and lower lines of the Bollinger Bands. The RSI has dropped from the overbought level of 75 to the current 43. The pair will likely move lower to test the important support of 107.50.

USD/CAD

The USD/CAD continued to decline ahead of important GDP data. The pair is now trading at 1.3085, which is the lowest level since January this year. On the four-hour chart, this price is below the 14-day and 28-day moving averages. The RSI has remained along the oversold level of 30 while the momentum indicator is below the 100 level. The pair will likely continue moving lower to test the important support of 1.3050.

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